Required information [The following information applies to the questions displayed below.) Simon Company's year-end balance sheets follow. At December 31. Assets Current Year 1 Year Ago 2 Years Ago $ 35,625 62,500 Cash Accounts receivable, net Merchandise inventory Prepaid expenses Plant assets, net Total assets Liabilities and Equity $ 31,800 89,500 112,500 10,700 278,500 $ 523,000 98,500 163,500 131,100 82,500 9,375 255,000 $ 75,250 101,500 163,500 104,750 $ 523,000 $ 445,000 For both the current year and one year ago, compute the following ratios: $ 37,800 50,200 54,000 5,000 230,500- $ 377,500 $ 51,250 83,500 163,500 79,250 $ 377,500 $ 445,000 Accounts payable $ 129,900 Long-term notes payable Common stock, $10 par value Retained earnings Total liabilities and equity (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 1B Required 2A Required 28 For both the current year and one year ago, compute the following ratios: (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 2B Compute the current ratio for each of the three years. Numerator: Current Ratio Denominator: Current Ratio 1 Current Year: $ 244,500/ $ 129,900 = Current ratio 1.88 to 1 1 Year Ago: $ 190,000/ $ 75,250 = 2.52 to 1 2 Years Ago: $ 147,000/ $ 51,250 = 2.87 to 1 Required 1A Required 1B > For both the current year and one year ago, compute the following ratios: (1-a) Compute the current ratio for each of the three years. (1-b) Did the current ratio improve or worsen over the three-year period? (2-a) Compute the acid-test ratio for each of the three years. (2-b) Did the acid-test ratio improve or worsen over the three-year period? Complete this question by entering your answers in the tabs below. Required 1A Required 18 Required 2A Required 28 Compute the acid-test ratio for each of the three years. Current Year: 1 Year Ago: 2 Years Ago: . . Numerator: Short-term investments + Acid-Test Ratio Denominator: Acid-Test Ratio Acid-test ratio 0 to 1 + + 0 to 1 0 to 1